Three Good Ways To Find Pretty House Deals, Part 2 of 3

Method Number Two: Direct Mail Campaigns

This can be a full marketing machine all in one if you do nothing else. Not only does it work well for many people, but also the list of targets is so big you can target your chosen prospects and never run out of mailing campaigns. Even though signs work well, the best target you can hope for is an area you like. With direct mail, you can use a rifle approach.

1. Pre-Foreclosures are a goldmine if worked correctly. This is a whole business within the business that’s worth the time and expense to learn.
2. Out-of-town owners almost always work. The list is easy to get from a Realtor or your local record office. This is one Kathy specializes in (with a 12% response rate if I remember correctly). Be sure to mention the property address in the letter and include a response card to make it easy for them to reach you without calling. Some people simply WON’T call. You must call them!
3. New Homeowners who’ve been in the house less than two years. I’ve heard over 70% of the foreclosures occurs within the first two years of ownership and a large percentage of those occur in the first year. Any broker can get you the list. You’re looking for pretty houses so you can get the deed!
4. Vacant Ugly Houses.
5. Target Zip codes you want to buy in. Just pick an area, rent the list of homeowners from a list broker and mail a postcard.
6. Divorces. Usually a sale is imminent so get the list from public records and contact them.
7. Estate sales. Mail to the trustee. They almost always need to sell.
8. FSBO Signs. You can download them off the online classifieds from your local paper or get them from a FSBO magazine.
9. VA Homeowners. You can get a list from a broker and select by zip code and other factors such as property value, length of ownership and age of veteran.
10. Bankruptcies are a matter of public record and many of them are looking to sell a home. You can pay cash for junkers or get the deed on pretty houses and petition the bankruptcy trustee to release the house from the bankruptcy.

If the seller is getting little or no money, it’s usually not a problem unless the house has a lot of equity and the trustee blocks the sale. That’s the exception, not the rule. Your mail should be directed to the owner not the trustee, and your letter should mention you specialize in bankruptcy purchases.

OK, I know you don’t feel comfortable with this, but you will after you’ve done a few! You’ll learn the rules and they won’t scare you anymore. You will become an expert in bankruptcy buys, especially when you learn the art of the short sale from my course on CD’s.